Ai Stocks 2026

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Ai Stocks 2026

Is It Still Wise To Buy AI Stocks?

The year 2025 was all about AI, as any stock that could even do something remotely related to AI made huge gains. But now many analysts think the bubble is about to burst.

So, is it too late for you to buy the AI stocks in 2026? To answer this, we must take a closer look at the AI industry as a whole.

A Lesson From Dot-Com Bubble

A quick look at the AI sector shows that massive amounts of money are flowing into the AI infrastructure. On top of that, there are no clear signs that this spending is slowing down anytime soon.

Also, the companies which made semiconductor equipment continue to see strong demand. This is directly translating into their share price.

Amidst all of this, we must learn a lesson or two from history. For example, the Cisco Systems stock gained 150% upside in 1998 as everyone thought internet will change everything.

And from 1999 to just before March 2020, the stock gained another 200% upside. But after that, it all crashed like a house of cards.

So, those who bought at that time spent a lot of money and had to wait for several years for the price to recover. For example, the stock only managed to reach the levels from 1999 in 2016!

All things considered, the risk with the AI stocks is very real. After all, everyone now thinks that AI will change everything, and this is very similar to what happened with the dot-com bubble.

That's why the safest thing to do here is take a more cautious approach. For example, you can still buy AI stocks, but make sure they don't make up a big chunk of your portfolio.

Like, it would be too risky to just have all of your money tied to a few AI stocks like Nvidia or AMD. And if you want to be extra safe, you can just avoid the AI stocks altogether.

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